Arlington Storage Company, LLC

Original Volume No. 1

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Effective Date: 08/24/2009, Docket: RP09-872-000, Status: Effective

Original Sheet No. 133 Original Sheet No. 133

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

(h) Termination of an Action Alert or OFO: ASC shall lift any effective Action Alert or

OFO promptly upon the cessation of operating conditions that caused the relevant

system problem. After ASC has lifted the Action Alert or the OFO, ASC shall post

a notice on its Internet Web Site specifying the factors that caused the Action Alert

or OFO to be issued and then lifted, to the extent such factors are known. ASC shall

also provide such notification via e-mail communication to those Customers who have

submitted a request, and provided e-mail address information for at least one contact

person, via ASC's Internet Web Site to receive e-mail notification of Critical Notices

issued by ASC.

 

(i) Penalties: All quantities tendered to ASC and/or taken by Customer on a daily basis

in violation of an Action Alert or OFO shall constitute unauthorized receipts or

deliveries for which the applicable Action Alert or OFO penalty charge stated below

shall be assessed.

 

(l) Action Alert penalty charge for each Dekatherm of Gas by which Customer deviated from the

requirements of the Action Alert shall be equal to an Action Alert Index Price, calculated

as 110% of the applicable daily Gas Daily Mid Point price posting for Tennessee, zone 6

for the Day on which the deviation occurred, multiplied by the quantity by which the Customer

deviated from the requirements of the Action Alert.

 

(2) OFO penalty charge for each Dekatherm of Gas by which Customer deviated from the requirements

of the OFO shall be equal to an OFO Index Price, calculated as three (3) times the applicable

daily Gas Daily Mid Point price posting for Tennessee, zone 6 for the Day on which the

deviation occurred, multiplied by the quantity by which the Customer deviated from the

requirements of the OFO.

 

Any penalty revenue collected by ASC pursuant to this Section 5.5(i) shall be credited to those firm

and Interruptible Customers that did not incur Action Alert or OFO penalties pursuant to this

Section 5.5(i) in the Month for which Action Alert or OFO penalty revenues were received

("Non-Offending Customers"), based on the ratio of the total charges paid during that Month by

the Non-Offending Customer to the sum of the total charges paid during that Month by all Non-Offending

Customers. Such credits shall be calculated for each Month of the twelve (12) Month period ending

July 31 of each year, and will be included on the Non-Offending Customer's invoice for the Month

following the date of the final Commission order approving ASC's penalty disbursement report;

invoices for a period shorter than twelve Months in the event and to the extent that the total

accumulated amount of Action Alert or OFO penalty revenue collected pursuant to this Section

5.5(i) by ASC as of the end of any Month exceeds $1,000,000. ASC will file with the Commission

a penalty disbursement report within sixty days of July 31 or sixty days after the end of the Month

for which revenue collected exceeds $1,000,000. Any penalty revenue credited to Non-Offending

Customers pursuant to this Section shall include interest calculated in accordance with

Section 154.501(d) of the Commission's regulations.